VA Streamline Refinance

The United States Department of Veterans Affairs (VA) offers some special support in the home buying process for veterans, active servicemembers, reservists, and eligible spouses / beneficiaries. In the case of refinancing your home, if you currently have a VA mortgage loan, you may be eligible for a VA Streamline Refinance. This is also called an Interest Rate Reduction Refinancing Loan, or IRRRL by the VA, and you may see some lenders refer to it as a “Streamline” or a “VA to VA” loan.

In simple terms, a VA Streamline Refinance Loan / IRRRL exists to make the refinancing of a house that was purchased with a VA loan easier. Because the VA already guaranteed the loan at the time of purchase, they are able to refinance it with less paperwork and scrutiny. The end goal is for the homeowner to improve their terms and / or reduce their payment.

VA Streamline Refinance Explained

Refinancing your VA loan within this process is considered “streamlined” for various reasons:

VA Streamlines require less documentation & paperwork

You may qualify for no appraisal or credit report depending on the program

Closing costs can be included in your loan

A VA Streamline requires that you must also be current on the last 12 months of payments on your mortgage without any lates. You may not take any cash out from a VA Streamline Refinance.